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OPERATING AGREEMENT FOR THE FIRST <br /> PHASE OF MITIGATION IN ALDEN PARK <br /> CHEVRON PIPE LINE COMPANY - CITY OF TRACY <br /> The following is an operating agreement between Chevron Pipe Line <br /> Company and the City of Tracy, California. This agreement covers <br /> Chevron's work for the first phase of mitigation in the Alden Park <br /> area of Tracy. Specifically, this agreement covers: <br /> Adding a submerged pump and other equipment inside the <br /> existing bioventing facility so that mitigation can begin <br /> with the process of combined liquids pumping and bioventing. <br /> Sampling the groundwater from the existing monitoring wells <br /> to check for contaminants. <br /> Excavating one oil seep and additional seeps if necessary. <br /> Planting new trees in the existing planters in Alden Park, <br /> and studying the effects of standing water on the health of <br /> the trees. <br /> These activities are described in detail in the Work Plan submitted <br /> to the City of Tracy, which plan is listed on the attached <br /> Reference page. <br /> 1. Chevron Pipe Line shall indemnify and save harmless the City of <br /> Tracy, its elected officials, agents, employees and servants <br /> thereof, from all claims, suits, or actions of every name, kind <br /> and description, brought for or on account of injuries to or death <br /> of any person or employee or damage to property resulting from the <br /> negligent performance of any work required by this agreement by <br /> Chevron Pipe Line Company, its officers, agents, employees, and/or <br /> servants. <br /> The duty of Chevron Pipe Line Company to indemnify and save <br /> harmless, as set forth herein, shall include the duty to defend ahi <br /> set forth in Section 2778 of the California Civil Code, provided, <br /> however, that nothing herein shall be construed to require Chevron <br /> Pipe Line Company to indemnify the City of Tracy, its elected <br /> officials, agents, employees and servants, against any <br /> responsibility or liability in contravention of Section 2782 of the <br /> California Civil Code. <br /> Chevron Pipe Line Company will maintain $10 million of general <br /> liability insurance as herein after set forth; Chevron Pipe Line <br /> Company, as a subsidiary of Chevron Corporation, currently covers <br /> its property/liability exposures through major insurance programs <br /> with sizeable deductibles. The above insurance falls within these <br /> deductibles and losses are covered by the financial resources of <br /> the company and are administered under Chevron's self-administered <br />